Main Market-bound IOIPG REIT Aims To Raise RM2.1 Bln From IPO
PUTRAJAYA, Nov 3 (Bernama) -- IOI Properties Group Bhd’s real estate investment trust arm IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) aims to raise RM2.1 billion from its initial public offering (IPO), priced at 96 sen per unit, ahead of its listing on the Main Market of Bursa Malaysia Bhd on Nov 25.
IOIPG REIT is expected to have a market capitalisation of approximately RM5.3 billion upon listing, with total indebtedness estimated at RM2.65 billion.
This represents a gearing ratio of 34.1 per cent based on its total asset value of some RM7.79 billion.
In a statement following its IPO prospectus launch today, IOIPG said the IPO entails offering up to 2.2 billion offer units, comprising a retail offering of 715.6 million offer units (approximately 13.0 per cent of the total issued fund size of 5.5 billion units) and an institutional offering of up to 1.48 billion offer units (up to approximately 27.0 per cent of the total issued fund size upon listing).
It said the retail offering comprises 550.6 million restricted offer units allocated to IOIPG shareholders, 55 million restricted offer units allocated to eligible directors and employees of IOIPG REIT’s manager and IOIPG Group via pink form, and eligible business associates of the group and 110 million offer units made available to the Malaysian public, of which 55 million units are reserved for bumiputera investors.
Additionally, it said the institutional offering comprises 1.48 billion offer units, including 687.5 million units allocated to bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI), and up to 796.9 million units offered to other Malaysian and foreign institutional investors, as well as a limited group of selected investors under the exemptions available pursuant to Regulation S of the US Securities Act.
IOIPG group chief executive officer Datuk Lee Yeow Seng said the group has a pipeline of assets that are nearing readiness for injection into the REIT, including IOI Mall Puchong, IOI Mall Damansara and IOI Mall Kulai.
“These assets have a combined net lettable area (NLA) of close to two million square feet. We still have a strong pipeline of development projects, including IOI Rio City in Puchong, Selangor, with an NLA of one million square feet.
“On top of that, we are also building two hotels, W Langkawi, and The Westin. These are the immediate pipeline assets that we are looking at,” he told reporters during the prospectus launch.
Lee said there is no fixed timeline for potential asset injections, as each property would first have to reach maturity before the group could propose injecting it into the REIT, subject to the necessary evaluation and board approval.
He said the group remains focused on retail malls and commercial offices, adding that it does not intend to venture directly into data centre REITs because it lacks core expertise in the segment.
IOIPG REIT’s initial asset portfolio comprises nine quality freehold assets in strategic locations across Selangor, KL City Centre and Penang, with a total appraised value of approximately RM7.66 billion.
The portfolio also includes six hotels operating under Marriott International’s family of brands, namely Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang, as well as two office developments comprising IOI City Tower 1 and 2, and PFCC Towers 1, 2, 4 and 5.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd are the joint principal advisers, global coordinators, bookrunners, managing underwriters and underwriters for the IPO.
CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, RHB Investment Bank Bhd and UOB Kay Hian (M) Sdn Bhd are the joint bookrunners and underwriters, while DBS Bank Ltd is a joint global coordinator and bookrunner, and Oversea-Chinese Banking Corporation Ltd is a joint bookrunner.
-- BERNAMA